I hope - a simple question.
A UK company supplies an EU customer with goods to a UK delivery address. The place of supply is UK to UK so VAT is charged despite the customer being in the EU.
A UK customer supplies a UK customer with a delivery address overseas (non EU) - so the reverse of the situation above. This is an export (despite the customer being in the UK) so the supply should be zero rated - am I right?
Thanks
Peter
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Replies (3)
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Yes. It's the ship-to address that determines the VAT rate.
As I'm sure you know, your customer must be VAT-registered in the destination country, there is specific wording which should appear on the invoice and you need evidence of removal of the goods from UK.
You don't have to be registered for VAT if the destination isn't in the EU.
But - don't worry about that. It'll all change in a fortnight anyway.